Core views:

1. Maintain a scale of 100 billion dollars and further focus on high-energy cities

In 2021, Hejing Taifu achieved contract sales of 103.8 billion yuan. The Guangdong-Hong Kong-Macao Greater Bay Area and the Yangtze River Delta accounted for 74% of sales, an increase of 2 percentage points over 2020, and Tier 1 and 2 cities accounted for 91%, an increase of 3 percentage points over 2020.

In terms of investment, Hejing Taifu maintained a prudent pace and increased the equity ratio of land investment. The equity ratio for land storage was added to 72%, with a consolidation ratio of 75%. Urban renewal and expansion progressed steadily, winning bids for 3 new old village renovation projects, and reached strategic cooperation with state-owned enterprises such as Guangzhou Urban Renewal Group during the year.

2. The gross profit margin remained above 20%, and the investment property business was developing well. In 2021, Hejing Taifu achieved operating income of 23.84 billion yuan, of which a gross profit margin of 21.2% and a net profit margin of 10.2%. The market response for high-end projects launched during the year was enthusiastic. In 2022, the company will promote more luxury property products. The removal and carry-over of luxury property products will help increase the profit level for subsequent years. The performance of the investment property business has improved, and operating income has maintained a relatively rapid growth.

3. The size of interest-bearing debt was reduced in an orderly manner. The net debt ratio and short-term cash debt ratio remained in line with the standards. At the end of 2021, Hejingtai's interest-bearing debt was 76.72 billion yuan, down 1.5% from the end of 2020, indicating that enterprises are focusing on controlling financial leverage and are beginning to see results. In 2021, Hejing Taifu's net debt ratio was 79.2%, and the short-term cash debt ratio was 1.4 times, all within the scope of regulatory requirements.